The movement toward payments digitization has had positive ripple effects in B2B, with an overwhelming number of CFOs remarking that accelerating those modernization efforts also makes back-end operations more efficient.
In a new study, “Business Payments Digitization: A Path to a Better Balance Sheet,” done in collaboration between PYMNTS and Corcentric, chief financial officers from organizations with $400 to $2 billion in revenues said that their efforts to improve back-office functions have led to healthier balance sheets, among other benefits. An overwhelming majority of respondents — 91% — echoed those sentiments.
The report found that 71% of firms ramped up digital payments as the pandemic hit operations through the past 18 months.
Important for Cash Flow Improvement
That finding comes as 95% of executives state that accounts receivables and payables are “very” or “extremely” important factors to consider in maintaining healthy balance sheets.
There’s broad recognition that the digitization of workflow and other processes can lead to widescale improvements, with improving working capital and cash flow chief among them. Greater integration, increased automation and an enhanced ability to attract and retain customers are also among CFOs’ top reasons for fast-tracking digitization.
Digitizing payments ultimately leads to financial improvements across the board. Beyond better efficiencies and working capital positions, the CFOs also took note of cost reductions and data security, which were cited by 62% and 61% of respondents, respectively.
The segments most aware of the positive impact that payments digitization can have on their industries include financial firms at 71%, followed by healthcare and medical at 63%.